A small South Carolina parts supplier collected about $20.5 million over six years from the Pentagon for fraudulent shipping costs, including $998,798 for sending two 19-cent washers to an Army base in Texas, U.S. officials said.

The company also billed and was paid $455,009 to ship three machine screws costing $1.31 each to Marines in Habbaniyah, Iraq, and $293,451 to ship an 89-cent split washer to Patrick Air Force Base in Cape Canaveral, Florida, Pentagon records show.

The owners of C&D Distributors in Lexington, South Carolina -- twin sisters -- exploited a flaw in an automated Defense Department purchasing system: bills for shipping to combat areas or U.S. bases that were labeled ``priority'' were usually paid automatically, said Cynthia Stroot, a Pentagon investigator.

Two words: black programs. I'm sure they paid the customary shipping rate and the rest went into some top secret project the public has no knowledge of.

Seeing as guilty pleas were entered in US District Court in South Carolina I do not think this was a black program - DoD would have never referred the case to the Justice Department if it was actually a means to launder funds for off the books projects

This company simply found a hole in the system; the numbers seem extraordinary but so are the volume of funds allegedly going to fund the war on tear.

Seeing as guilty pleas were entered in US District Court in South Carolina I do not think this was a black program - DoD would have never referred the case to the Justice Department if it was actually a means to launder funds for off the books projects

This company simply found a hole in the system; the numbers seem extraordinary but so are the volume of funds allegedly going to fund the war on tear.

Great points. Of course, Enron had nothing on the federal government when it comes to "creative accounting." I worked for the feds for 13 years and the fraud, waste and abuse was rampant then, and that was when we had admins that didn't spend like drunken sailors. Double and triple disbursements to contractors and vendors for the same goods/services were all too common.

Great points. Of course, Enron had nothing on the federal government when it comes to "creative accounting." I worked for the feds for 13 years and the fraud, waste and abuse was rampant then, and that was when we had admins that didn't spend like drunken sailors. Double and triple disbursements to contractors and vendors for the same goods/services were all too common.

And the biggest reason why I don't trust the federal govt. to do anything for me...

May nobody can screw it up more, but Enron, the dot-com bubble, the savings and loan mess from the 80s and the buckets of money burned on making subprime and Alt+A loans to people who were as creditworthy as the family dog indicate the private sector can screw it up just as well.

OTOH, the private sector did not decide to invade Iraq, so you may have a point.